The Singapore Government has announced $8.3 billion dollars over the next three years to be allocated to spurring enterprises as well as the economy as a whole. Included in their spending is a series of optimistic tax rebates and other related measures — we take a look at what this means for doing business in Singapore.
2020 General Enterprise Investment — At a Glance
Deputy Prime Minister Heng Swee Keat (also Finance Minister) said on Tuesday, Feb 18 that the large pool of investment will be split under three main pillars — developing people, deepening the capabilities of enterprises, and enabling stronger partnerships.
From Mr. Heng, “Within each industry, we need to strengthen partnerships to deepen industry-wide capabilities. Even as our enterprises compete to differentiate themselves, they must come together to solve common challenges.”
2020 Tax Measures for Enterprise Growth
As well as a raft of mechanisms to help businesses innovate and expand, there were also a series of tax measures announced to provide relief to encourage growth even further.
First and perhaps most notably, Singapore businesses will get a rebate on their corporate tax. At a cost to the Singapore Government of around $400 million, companies will be given a rebate of 25% tax payable (with a maximum of $15,000) for 2020.
There were other enhancements to tax treatments announced, including the allowance for companies to carry back any unabsorbed capital allowances and trade losses for up to three previous financial years.
Targeted at the likes of hotels and other tourist-centric industries, companies will be able to fast-forward the write-off for expenditure on machinery and renovations for 2021. The idea being that these tourism businesses can carry out upgrades during the current quiet period and be ready to go for when the tourists come back in force.
A Bright Three Years Ahead
Any minor quibbles aside, the Singapore Government has overall, showed maturity and foresight in its plan to encourage enterprises across the board. By encouraging business from SMEs up to global enterprise, there is something for everyone to utilise to encourage growth. A focus on technology both in terms of operations and innovation also bodes well for Singapore’s reputation as a global hub of technology.
If you’d like any more information on how Singapore’s 2020 budget could improve your business, big or small, please do contact us. It’s both our job and our pleasure to assist Singapore businesses grow and prosperty.
Read the uncut version of this article at Singapore Tax & Accounting Services website.
